Commercial finance

[jappronz]

Hi Beano, are you buying auckland industrial atm?
Also i am very wary of some of these syndicates, an interested party may find with some of these properties the leases are hugely overpriced per m. I have heard of examples where the tenants have been given multi millions in 'cash back' as part of the lease.

[Beano]

Hi Beano, are you buying auckland industrial atm?
Also i am very wary of some of these syndicates, an interested party may find with some of these properties the leases are hugely overpriced per m. I have heard of examples where the tenants have been given multi millions in 'cash back' as part of the lease.

No i brought in wgton
When i relocated to Auckland I brought residential retail and office
Thought i was overweight in industrial
Syndicates are run as a business and many of the costs are carried by the syndicate members

[Davo36]

Beano, you mention the oil crisis. Which was in 1973 right? So have you been investing since before then?

[Beano]

Beano, you mention the oil crisis. Which was in 1973 right? So have you been investing since before then?

Yes correct ...weekend shopping had just started....i was a primary schoolboy when i first invested

[Joshua Fong]

Interesting thread. Am trying to get started to buy my first commercial.

[Magusb]

Hi Beano,

as you couldn't get your question answered, would you tell how you think you'd start today if you have to?

[Beano]

Interesting thread. Am trying to get started to buy my first commercial.

Hi Beano,

as you couldn't get your question answered, would you tell how you think you'd start today if you have to?

If i had to start again today i would buy commercial
Something like the 10pc net yield in Auckland. ..work on improving the rental...fund it at 4.3pc ...use the 57pc of the rental to repay debt (and pay tax)...then keep growing thr portfolio concentration on under rented premise (or buy out of the rest of the units if part of a bc as the specific property i referred to is part of a bc)
I started with zero knowledge as a teenager ...i would hope i would not make the many mistakes i did then and be able to have a large portfolio rather than the small one i have.
What is your aim 10m , 20m rental pa by the time you retire from investing ?
People i believe grossly over estimate what they can achieve in the short term but grossly under estimate what they can achieve in a lifetime.

[Bobsyouruncle]

Just remember guys there is zero evidence that Beano has ever invested in anything. He appears to be a troll 100%. I may be wrong but so far it appears that way. You have to ask yourself why someone with somewhere between 50 and 100 million in commercial property would be asking about finance on a public forum. And why he won't talk about his history when asked.

[Anthonyacat]

Agreed on the need for some scepticism.

But a troll? A bit harsh, given the level of productive commentary he provides.

Then again,What is your aim 10m , 20m rental pa by the time you retire from investing ? is arguably a trolling comment. In all my experience with even the most ambitious of property clients, I've never met anyone with ambition of more than a $500k annual investment income. I'll personally be satisfied with $70-100k after costs. Why continue empire building past the point where you're comfortable and free to do whatever you want?

[Bobsyouruncle]

Well by troll I mean fake. He started out asking for finders for residential, then suddenly he had 25 homes, then he had 3 to 4 mil a year in rental income then he was looking for small commercial loans of 20 to 40 mil and has been a long standing commercial investor. All in a 12 month period.

Re income I agree completely. I wish I had stopped when I had achieved my initial goals with hindsight. I would have avoided the GFC/alternative income disasters/bankruptcy etc completely. Get to where you can be free and then go and be free I reckon. For most of us once you get over 100K genuinely passive you should be set for life as long as some of those rentals are in Auckland or another main centre where rental increases keep up with inflation.

[Davo36]

Yeah I'm not sure about Beano.

I'd like to think he's the real deal, but Dean makes some good points (seem to be agreeing with him more and more lately, heck!)

Regarding how much is enough, yeah you can keep going forever really, I used to be someone who wanted 10m then 20m then 50m then 100m etc etc. But once I got enough to live on, I stopped.

[Beano]

Hi Beano,

as you couldn't get your question answered, would you tell how you think you'd start today if you have to?

Hi Masqusb
I am not a property guru and investment adviser like Dean Letfus who has helped many people become large successful investors or a large successful investor like Eyal Aharoni (a Wellingtonian like me) who I highly admire (he has purchased large pieces of land [$35M} in Rongotai Wellington ..Bunnings store being on part of his land and many many other properties in NZ http://www.primeproperty.co.nz/ [I have watched ,admired and copied him for many a years ...my portfolio would only be a fraction of his]

Each year in the NBR there are many successful property investors who appear
https://www.nbr.co.nz/article/nbr-ri...mers-ck-192169
Each one of these have many times many times my rental income
So in reality it is achievable !
There are always great opportunities!

Eyal Aharoni (who I highly admire) achieved $70m of wealth and possibly $20m+ of income (it would not surprise me) in only 25 yrs ...all I believe from nothing

I am certain if you are young enough , patient enough , discipline enough and follow in the footsteps of some of these great investors you too will have rental income in excess of $20m

Beano

[Davo36]

Check out this bit:

Kirkcaldie’s chairman, Falcon Clouston, told the shareholders Zheng had a $200 million property portfolio, which seems to have only grown since 2014.

And Eyal Aharoni is described as a property developer, not investor.

[Bobsyouruncle]

So nothing you've said about yourself so far is true Beano? You don't have 25 plus properties and you don't have 3 to 5 mil in income from real estate and you aren't getting "small" loans of 20 to 40 mil regularly???

[Bobsyouruncle]

Isn't Eyal the one on court for renting out that slum office building in Welly as residential flats?